The Tax Unit (TU) is a referential value created by the Organic Tax Code in 1994 to update tax bases, fees, fines and similar tax concepts according to the annual inflation. The National Integrated Service of Customs and Tax Administration ("Revenue Service"), upon approval of the Permanent Commission of Finance of the National Legislative Assembly, must adjust the TU based on the variation of the National Consumer Price Index published by the Central Bank of Venezuela for the prior year.
Despite the fact that the Organic Tax Code provides for the annual adjustment of the TU, the Revenue Service adjusted the TU four times in nine months from March 2018 until the end of that year, without the approval of the National Legislative Assembly.
In less than six months, in 2019 the Revenue Service has once again adjusted the TU value to 50 Sovereign Bolivars (VES), and, like in the past, without the National Legislative Assembly's approval, as summarized below:
|Adjustment||Days in force|
||61 days during 2018|
|49 days during 2018|
||82 days during 2018|
||112 days during 2018 and 64 days during 2019|
Considering the Central Bank of Venezuela has not published the National Consumer Price Index since December of 2015, different reliable sources have estimated the inflation for 2017 between 2,616%7 and 2,735%8 and the inflation for 2018 in 1.299.724%9, the value of the TU is divorced from reality. Something similar occurred in 2016, 2017 and 2018.
In cases of taxes determined annually, such as income tax, the TU value will be the one in force for at least 183 consecutive days during the period. For taxes determined other than annually, such as VAT, the TU will be the one in force at the beginning of the period.
The TU adjustment will only apply for determining national (federal) taxes administered and collected by the Revenue Services and the fines imposed by such office.
The adjustment of the TU increased in approximately 194% other concepts, such as the tax base of taxes and fees. The most important are:
|Concept||Old Value TU = VES 17.00||New Value UT = VES 50.00|
|Maximum income tax rate: (Individuals, Tariff No. 1: 6,000 TU) (Legal entities, Tariff No. 2: 3,000 TU)||Individuals: 34% on the portion of net income over VES 102,000||Individuals: 34% on the portion of net income over VES 300,000.|
|Legal entities: 34% on the portion of net income over VES 51,000||Legal entities: 34% on the portion of net income over VES 150,000|
|Minimum net income required for individuals to file income tax returns (1,000 TU)||VES 17,000||VES 50,000|
|One-off income tax deduction (desgravamen único) for individuals (774 TU)||VES 13,158||VES 38,700|
|Personal and family tax rebates (10 TU for each rebate)||VES 170||VES 500|
|Minimum payment to individuals, different from wages and salaries, subject to back-up income tax withholding||VES 1,416.66||VES 4.166.67|
|Adjustment ("sustraendo") applicable to the minimum payments to individuals, other than salaries and wages, subject to income tax withholding||VES 14.16 (1% withholding) VES 125 (3% withholding)||VES 41,66 (1% withholding) VES 125 (3% withholding)|
|Revenue stamps to be placed on each page of documents to be filed with authorities||VES 0.34||VES 1.00|
|Airport fee of the Simón Bolívar International Airport||National = 779 UT||VES 13,243||VES 38,950|
|International = 1,440 UT||VES 24,480||VES 72,000|